Sharp selling with bears becoming more stronger

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What happened yesterday?             

Indian Market

Indian shares posted their biggest single-day drop in about three weeks on Tuesday, weighed down by slowing corporate earnings and sustained foreign selling. The NSE Nifty 50 NIFTY fell 1.25% to 24,472.1, while the BSE Sensex SENSEX shed 1.15% to 80,220.72.

Both the benchmarks gained about 0.4% each in the first hour of trade before reversing gains, logging their worst session since Oct. 3.

• All the 13 major sectoral indexes declined. Forty-seven of the Nifty 50 stocks logged losses.

• The broader, more domestically-focussed small-caps CNXSMALLCAP mid-caps CNXMIDCAP fell about 4% and 2.6%, respectively, underperforming the benchmarks and clocking their worst session since Aug. 5.

• City Union Bank CUB gained 12% after posting rise in quarterly profit, while the Jana Small Finance Bank JSFB shed 10.4% after reporting a drop in net profit and a sequential deterioration in asset quality in the September quarter.

• Non-bank lender L&T Finance LTF lost 7.1% in its worst session since early March as analysts flagged potential disruption to earnings growth due to headwinds in the microfinance segment.

• Domestic equities have seen a spate of profit-taking since hitting record highs on Sept. 27, with the Nifty shedding about 7% from all-time high levels.

FII net sold for -3978.61 crores

DII net bought for +5869.06 crores

US Market

Global stocks dropped for the second straight session while U.S. yields rose on Tuesday amid market uncertainty ahead of the U.S. election as well as the outlook on interest rate cuts. Democratic Vice President Kamala Harris held a marginal lead of 46% to 43% over Republican former President Donald Trump, according to a Reuters/Ipsos poll, as both candidates vie to capture swing states ahead of Nov. 5.

The benchmark S&P 500 and the Dow finished lower in choppy trading driven by losses in industrials, materials and utilities stocks. The Nasdaq ended higher as investors digested corporate results from companies across sectors in the U.S. economy.

The Dow Jones Industrial Average DJI fell 0.02% to 42,924.89, the S&P 500 SPX fell 0.05% to 5,851.20 and the Nasdaq Composite IXIC rose 0.18% to 18,573.13.

• The pan-European STOXX 600 index SXXP finished down 0.21%. MSCI's gauge of stocks across the globe EURONEXT:IACWI fell 0.29% to 851.14.

• The odds that the Fed will deliver a quarter-point cut at its Nov. 7 meeting are at 92%, while the chance of no rate cut is at 8%, according to CME's FedWatch tool. Benchmark 10-year Treasury yields US10Y were up 2.2 bps at 4.204%, after earlier reaching 4.222%, the highest level since July 26.

• The U.S. dollar rose to a fresh 2-1/2-month high amid Fed rate cut expectations. The dollar index DXY, which measures the dollar against a basket of currencies, including the yen and the euro, rose 0.13% to 104.09, after hitting 104.10, its highest since Aug. 2.

• Against the Japanese yen USDJPY, the dollar strengthened 0.21% to 151.14. Sterling (GBP=EBS) weakened 0.05% to $1.2978, while the euro EURUSD was down 0.17% at $1.0797.

Oil prices rose for the second consecutive session, as traders downplayed hopes of a Middle East ceasefire and focused on a tightening global supply and demand balance.

• Brent crude futures BRN1! for December settlement rose 2.36% to $76.04 per barrel. U.S. West Texas Intermediate futures CL1! for November delivery, which expire after Tuesday's settlement, rose 2.17% to $72.09 a barrel.

• Gold hit an all-time peak. Spot gold GOLD rose 1.03% to $2,747.56 an ounce. U.S. gold futures GOLD settled 0.8% higher at $2,759.8.

What to expect today?   

• Asian market trading in mild green where Japan in  +0.04% and Hong Kong +0.09%
  US Futures trading  at +0.15%

• GIFT NIFTY trading  at +0.05%, up by 11.5 points

• All the factors indicating a flat opening in the market.

NIFTY Technicals

In NIFTY high amount of call OI at 25,000 and put OI at 24,000, PCR at 0.5. NIFTY FUT indicating SHORT BUILDP week. And in case of BANKNIFTY, PCR stays at 0.54 and FUT with SHORT BUILDUP.

If NIFTY shows reversal signs it can move higher till 24,800 (NF FUTURE) or it breaks down it can push down to 24,320-24,300.

INDIA VIX rose to 14.3950

 All the best for the day.